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Debate House Prices


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More mortgage joy, Times says Halifax to raise rates.

http://business.timesonline.co.uk/tol/business/money/property_and_mortgages/article3752244.ece

Halifax is to increase rates on some of its most popular mortgage deals by a massive 0.5 per cent tomorrow.

On one two-year fixed rate, the bank will increase the rate from 6.09 per cent to 6.59 per cent. Borrowers taking out this type of deal will now pay £46 more a month on a £150,000 loan. On a two-year tracker, the rate will increase from 1.49 per cent above base rate to 1.99 per cent, giving a current rate of 6.99 per cent.

But more worryingly for buyers:

Brokers said that Halifax's move sounded the death knell for the two-year fix, the most popular type of mortgage over recent years, as it sent out a clear signal that it wants to commit borrowers into fixing their mortgage for longer.

Actually, the two year fix is a swizz and it's good that people are being steered away but it's been the mainstay of the mortgage culture for a good few years now. Wonder how the addicts like having their fix taken away?
--
Every pound less borrowed (to buy a house) is more than two pounds less to repay and more than three pounds less to earn, over the course of a typical mortgage.

Comments

  • tomstickland
    tomstickland Posts: 19,538 Forumite
    10,000 Posts Combo Breaker
    Interesting that; I was talking to a mortgage broker today who told me if I said yes before 8pm then he could secure the rate he was talking about, with 14 days to change my mind if I wanted.
    Happy chappy
  • thriftymomma
    thriftymomma Posts: 1,107 Forumite
    Interesting that; I was talking to a mortgage broker today who told me if I said yes before 8pm then he could secure the rate he was talking about, with 14 days to change my mind if I wanted.

    Did you say yes?
    Got Halifax Classic to reduce my interest rate by 5% woohoo - 10/06/08 Thanks MSE!
    Another 3% shaved off 10/12/08
    ANOTHER 4 % June 09:beer:
  • tomstickland
    tomstickland Posts: 19,538 Forumite
    10,000 Posts Combo Breaker
    Yes, after doing a quick spreadsheet I decided that it looked like the least-worst result.
    Happy chappy
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